Gold still makes sense for a few simple reasons.
When interest rates don’t beat inflation, keeping money in cash or bonds slowly loses value, so gold becomes a safer place to park wealth.
Central banks keep buying gold, and just a few of them account for most of the demand. That steady buying helps support prices even when markets pull back.
Gold is a safe place in uncertain times. When wars, economic shocks, or market stress appear, investors often move into gold to protect their capital.
Gold also acts as a currency shield. It holds value when paper currencies weaken over time.
Finally, gold balances a portfolio. Even a small amount can reduce overall risk when stocks and bonds fall together.
These simple reasons explain most of why gold remains relevant, even when prices are high.
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